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Lever Age pays an 9% rate of interest on $9.40 million of outstanding debt with face value $9.4 million. The firm's EBIT was $2.6 million.

Lever Age pays an

9%

rate of interest on

$9.40

million of outstanding debt with face value

$9.4

million. The firm's EBIT was

$2.6

million.\ a. What is its times interest earned?\ Note: Round your answer to 2 decimal places.\ b. If depreciation is

$140,000

, what is its cash coverage ratio?\ Note: Round your answer to 2 decimal places.\ a. Times interest earned\ b. Cash coverage ratio

image text in transcribed
Lever Age pays an 9% rate of interest on $9.40 million of outstanding debt with face value $9.4 million. The firm's EBIT was $2.6 million. a. What is its times interest earned? Note: Round your answer to 2 decimal places. b. If depreciation is $140,000, what is its cash coverage ratio? Note: Round your answer to 2 decimal places

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